Bank of America Corp (NYSE:BAC) will be changing its current minimum hourly wage of $17 to $20 by 2020, a deviation from its earlier plan of implementing this change in 2021. The bank will also extend special compensation awards to around 95% of its international workforce.
Focus on sustainable growth
In April 2019, Bank of America reported that it plans to achieve its minimum hourly wage target of $20 in coming two years. This increase was expected to occur in increments. First increment was planned on May 1, 2019, wherein the minimum hourly wage was raised to $17. The growth in increment is part of the firm’s commitment to being an exceptional workplace and offering sustainable, responsible progress through competitive programs and benefits that support the different needs of its more than 205,000 employees.
Bank of America is dedicated to supporting a viable minimum wage rate. It has been an industry pioneer in setting an internal minimum wage rate for its U.S. hourly staff and has increased at regular intervals over several years. Since 2010, the company’s minimum wage has surged by over $4 per hour. Two years ago, the bank increased the minimum hourly pay to $15, and it is much higher today.
Bank of America has set this pay-for-performance philosophy to reinforce its core culture and values by encouraging employees for excellent work, retaining and inspiring talent, and growing trust within teams. Its initiatives have been recognized by several organizations, such as the 2019 LinkedIn Top Companies list.
More recently, Global Finance magazine acknowledged Bank of America as the Best Bank in the World. The award is the top honor of the magazine’s 2019 listing of the world’s leading banks. According to the publication, the bank was chosen based on its excellent performance over the last year, management and reputation fineness, and leadership in digital transformation.
Commenting on the recognition, CEO Brian Moynihan expressed that commented on this award reflects the team’s ability to: managing risk well, focusing on their clients and ensuring progress is sustainable by making the company a remarkable place to work.